If Monica Has a Comparative Advantage in Baking and George

question 101

Multiple Choice

If Monica has a comparative advantage in baking and George has a comparative advantage in sewing, then

• A)Monica must have an absolute advantage in baking
• B)Monica must have an absolute advantage in sewing
• C)George must have an absolute advantage in baking
• D)George must have an absolute advantage in sewing
• E)we can conclude nothing about absolute advantage

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Definitions:

Equal Distribution

The equitable allocation of resources, income, or wealth across different segments of society or among participants in a market or economy.

Social Services

Public and private services designed to aid individuals and communities in need, including healthcare, education, and welfare services.

Competition

The rivalry among businesses to attract customers, increase sales and market share, and achieve a sustainable competitive advantage.